TAILIEUCHUNG - Placebo Effects of Marketing Actions: Consumers May Get What They Pay For

Affirming further that educational systems and other social services should be involved in the protection and promotion of breastfeeding, and in the appropriate use of complementary foods; Aware that families, communities, women's organizations and other nongovernmental organizations have a special role to play in the protection and promotion of breast-feeding and in ensuring the support needed by pregnant women and mothers of infants and young children, whether breast-feeding or not; Affirming the need for governments, organizations of the United Nations system, nongovernmental organizations, experts in various related disciplines, consumer groups and industry to cooperate in activities aimed at the improvement of maternal, infant and young child health and nutrition; Recognizing that. | BABA SHIV ZIV CARMON and DAN ARIELY The authors demonstrate that marketing actions such as pricing can alter the actual efficacy of products to which they are applied. These placebo effects stem from activation of expectancies about the efficacy of the product a process that appears not to be conscious. In three experiments the authors show that consumers who pay a discounted price for a product . an energy drink thought to increase mental acuity may derive less actual benefit from consuming this product . they are able to solve fewer puzzles than consumers who purchase and consume the exact same product but pay its regular price. The studies consistently support the role of expectancies in mediating this placebo effect. The authors conclude with a discussion of theoretical managerial and public policy implications of the findings. Placebo Effects of Marketing Actions Consumers May Get What They Pay For Pro tali numismate tales merces. One gets what one pays for. Gabriel Biel Dictionary of Cliches Rogers 1985 Consumers beliefs and expectations shaped by experiences in their daily lives often influence their judgments of products and services. For example consumers often believe and therefore judge lower-priced items to be of lower quality see . Gerstner 1985 Huber and McCann 1982 Rao and Monroe 1989 . Consumers beliefs and expectations can also affect their subjective experiences. For example a drink may taste better if it has a favorite brand s label than if it is unlabeled Allison and Uhl 1964 McClure et al. 2004 . Similarly meat that is labeled 75 fat free tastes better than the same meat that is labeled as containing 25 fat Levin and Gaeth 1988 . The question that we address in this research is whether beliefs and expectations that marketing actions evoke can affect more than judgments and subjective consumption experiences. Specif- Baba Shiv is Associate Professor of Marketing Graduate School of Business Stanford University e-mail .

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